Regional variation in the cyclical asymmetry of UK unemployment

Abstract

In this letter regional variation in the asymmetric behaviour of the cyclical element of UK unemployment is examined. Strong evidence of asymmetry in the level of the cyclical element of unemployment is found for both the UK as a whole and all of the regions considered. Strong evidence of asymmetry in the rate of growth of this cyclical element is also found for the aggregate series. However a similar consensus for this form of asymmetry is not found in the individual regions, with some disagreeing over its extent while others fail to detect its presence at all. The results for the aggregate series therefore mask some interesting variation at a regional level.